4. LOSS PER SHARE

We compute basic income (loss) per share using the weighted average number of common shares outstanding. The Company has two categories of dilutive potential common shares: the Series A preferred shares issued in May 2011 in connection with the registered direct offering and shares issuable upon exercise of options. We compute diluted earnings per share using the if-converted method for preferred stock and the treasury stock method for stock options, respectively. Shares issuable upon exercise of 301 vested options and 267 common shares issuable upon conversion of preferred shares were not considered in computing diluted income (loss) per share for the years ended September 30, 2018, because they were anti-dilutive. Shares issuable upon exercise of 168 vested options and 17 common shares issuable upon conversion of preferred shares were not considered in computing diluted income (loss) per share for the years ended September 30, 2019, because they were anti-dilutive.

The following table reconciles our computation of basic net loss per share to diluted net loss per share:


	Years Ended September 30,
	2019		2018
Basic net income (loss) per share:

Net loss applicable to common shareholders	$	(790)	$	(194)
Weighted average common shares outstanding		10,383		8,771
Basic net loss per share	$	(0.08)	$	(0.02)

Diluted net income (loss) per share:

Diluted net loss applicable to common shareholders	$	(790)	$	(194)

Weighted average common shares outstanding		10,383		8,771
Plus: Incremental shares from assumed conversions:
Series A preferred shares		—		—
Dilutive stock options/shares		—		—
Diluted weighted average common shares outstanding		10,383		8,771
Diluted net loss per share	$	(0.08)	$	(0.02)